Spangle AI has raised $15 million in a Series A round to build what it calls the “agentic infrastructure layer” for commerce, targeting a $6.8 trillion global commerce market that is being reshaped by AI‑driven shopping journeys. The Seattle, Washington, startup is already powering AI commerce experiences for fashion names like REVOLVE, Steve Madden, Alexander Wang, and WHP Global, delivering up to 50% conversion lifts and 2x ROAS improvements.
Series A round and investors
In its January 2026 announcement, Spangle AI said it closed a $15 million Series A led by NewRoad Capital Partners, with participation from Madrona, DNX Ventures, Streamlined Ventures, and strategic angel investors. The new capital brings total funding to $21 million, following a $6 million seed round announced in 2025.
The company, founded in 2024 by former Amazon, Saks, and Gap leaders, is valued at around $100 million after the round, according to external coverage. Spangle AI plans to use the proceeds to accelerate R&D, advance its models, and scale its engineering team as retailers race to adapt to AI‑native shopping behavior.
What Spangle AI actually does
Spangle AI positions itself as the connective tissue between AI‑led discovery—on tools like ChatGPT Shopping, Google AI Overviews, and Meta surfaces—and on‑site conversion on retailers’ own channels. Its infrastructure centers on ProductGPT, a commerce‑specific reasoning engine that learns each brand’s catalog, merchandising logic, ad context, and shopper intent, while “Seller Agents” execute in real time on sites and apps.
Every interaction feeds back into the system, creating what investors describe as a deepening “data moat” that improves recommendations, layouts, and merchandising with each session. The goal is to replace static, funnel‑based ecommerce with adaptive experiences that re‑rank products, rewrite content, and re‑route traffic automatically based on live shopper signals.
Early results with fashion and retail brands
In its first nine months post‑launch, Spangle AI has signed nine enterprise clients with a combined $3.8 billion in online sales, and has grown traffic flowing through Spangle experiences by an average of 57% month over month, while quadrupling revenue run rate from Q3 to Q4.
For REVOLVE, the platform delivered a 60% improvement in ROAS and a 50% lift in revenue per visit, according to vice president of performance marketing Ryan Pabelona, who said, “The adaptive nature of Spangle AI meant we could meet shoppers in the moment, all while staying on-brand.”
At Steve Madden, Spangle AI produced a 41% add‑to‑cart lift and a 20% conversion increase, with VP of commerce Colleen Waters saying, “We appreciate that Spangle’s intelligence layer is tailored specifically for Steve Madden. The models and agents reflect our brand and get smarter over time versus generic AI solutions.”
Investor Dave Finnegan, strategic advisor at NewRoad Capital Partners, said, “As operators and technologists who’ve run retail businesses, we know point solutions won’t capture the agentic commerce opportunity”.
Why this funding matters for the 6.8T commerce market
Spangle AI’s pitch rests on the idea that a $6.8 trillion commerce market is moving toward AI agents that research, compare, and even transact on behalf of shoppers before they ever hit a brand’s homepage.
CEO Maju Kuruvilla, formerly CEO of Bolt and a senior leader at Amazon, said, “Spangle bridges that gap. We’re building infrastructure where AI-driven discovery and on-site execution operate as one intelligence layer, connecting upstream intent to real-time conversion”.
“We saw what’s broken in traditional e-commerce stacks: fragmented data, slow feedback cycles, no intelligence layer tying it together,” said Fei Wang, CTO of Spangle and former Amazon Principal Engineer leading Alexa and Customer Service Technologies.
By making commerce stacks “agentic,” Spangle AI wants to help retailers protect and grow high‑cost paid traffic, boosting conversion and ROAS even as acquisition costs climb. Recognition from programs like Business of Fashion’s “AI Startups to Watch,” the NRF VIP Awards for Best AI‑Driven Marketing Solution, and the 2025 New York Fashion Tech Lab signals that fashion and retail leaders are watching this space closely.
